merchant accounts

Willy

Graduate

Posts: 199

3+ Months Ago

Hey guys,

I've been trying to read up on this subject, with little luck. I wan't to try and market a piece of software my friend has coded. I have no idea what sort of interst turnout to expect, but i would like to have credit card payment. Am i out of my mind for tryign to get such a small time merchant account?? Do they exist?

thx

justin

Bigwebmaster

Site Admin

Posts: 9072

Loc: Seattle, WA & Phoenix, AZ

3+ Months Ago

Yes you can get one. All you need is a business licence and then you need to find a bank that will provide you with one. My main bank that I use turned me down for a merchant account because they said that online business was too risky (US Bank), so I did some looking around and finally a bank a few states away from me (Humboldt Bank) approved me and I am able to accept credit cards through them and Cybercash (the gateway processor). Now even though I have everything to accept credit cards, it can still be confusing on the process and how to actually get it going online. For me it took a great deal of reading and work to accomplish, but its definetely possible. I think to get the online gateway processor (Cybercash, now owned by Verisign - there are many others too) - it cost like $400.00 to just setup, then you have to still get your own custom software (which I modified Cybercash's that they provided for free).

As far as fees, to accept credit cards they get like 2.5% of each sale, with a minimum montly payment of $60.00. (At least though my bank and processor, I think cybercash charges a gateway fee of $30.00 a month, and then the bank has a bunch of small fees).

The best way to go about it is to find and talk to representatives from banks, or to look for a gateway processor which you must have by the way. That is basically like the machine that swipes your card when you goto stores, except its totally online and they are working with credit card companies. Anyway these gateway processors usually list a bunch of banks that you might look into contacting to help you.

Another alternative is to get a merchant account, and the go with someone like Ibill or CCbill who do all the complicated stuff for you, but use your merchant account. That might be an easier alternative for you.